Answer:
New value= $80,000
Explanation:
Giving the following information:
Purchase price= $500,000
Current value= $320,000
First, we need to calculate the annual decrease in value:
Total decrease 3 years= 500,000 - 320,000= 180,000
Annual decrease= 180,000/3 = $60,000
Now, the value of the machine 4 years from now:
New value= 320,000 - (60,000*4)
New value= $80,000
